Paccar . is a global leader in manufacturing and designing state-of-the-art light, medium and heavy-duty commercial trucks. The company also distributes aftermarket components and parts for related commercial vehicles, including trucks, on the global market. Paccar . generated 78.2 percent of its revenue from truck sales, operating leases, and extended warranties, and 21.4 percent from parts and revenue via dealer services during the quarter that ended on March 31, 2021.
In terms of geo-diversification, the company got most of its truck revenue from North America, Canada, and US respectively, (60.4 percent), Europe (26.6 percent) and the rest from South America, Mexico, Australia etc.
Paccar . reported a 13.4 percent increase in revenue in 2021, as economic growth spurred earnings, reaching $5.85 billion and beating consensus estimates by a respectable $630 million. Moreover, non-GAAP earnings came in at $1.35 per share, 9 cents over consensus estimates.
That’s mostly due to class 8 truck orders in the U.S. and Canada rising by almost 300 percent during the 1st quarter, with freight tonnage exploding along with the United States economy. According to market analysts, this is a long-term trend and BMO Capital raised Paccar . price target quoting a meaningful rebound of the commercial vehicle market in 2021, in a trend that could last well through 2024. Also, market analysts previsioned that the company’s rapidly-growing profitability could further compress the stock’s valuation and provide a better entry point down the road. Paccar . raised its quarterly dividend by 6.3 percent to $0.34 per share, which makes for a 1.45% forward yield.
The dividend is payable on June 2, 2021, to shareholders on record as of May 12, 2021.